Money in Spain is what makes the economy tick.
Unfortunately travel isn’t free and we will need to pay for what we consume when visiting Spain.
Let’s discuss everything you need to know about money in Spain, while traveling there.
Currency in Spain
In Spain, the currency is the Euro, which has been in use since 2002.
The Euro is the common currency across most of Europe, making life easy for travelers who move between eurozone countries. You will typically see the Euro symbol written as € before or after the value, with this placement differing throughout Europe.
If you’re traveling with Euro coins or notes from countries like Germany or France, you can spend them without any hassle in Spain. While the Euro notes are consistent across all countries in the eurozone, Spanish Euro coins feature Spanish designs on the back.
Like other countries these showcase elements of Spain’s cultural heritage, such as an image of the famous writer Miguel de Cervantes or the Cathedral of Santiago de Compostela
Regardless of their origin, Euro coins from any participating country can be freely used in Spain.
Using Cash in Spain
Cash is still widely used in Spain, especially in smaller towns and rural areas.
When you’re out and about enjoying Spain, grabbing a quick coffee at a local café, or “cafetería,” rarely breaks the bank. You might only need a couple of euros, so keeping some coins handy is advisable.
Quite often smaller bars and cafes now accept card payments, but it is better to check in smaller towns and villages in the countryside as it is less common than in cities.
At popular beach destinations on the islands cash is almost not necessary. Here cards are widely accepted.
At most popular tourist sites, credit cards are generally accepted, but always carry some cash just in case. At bigger places, for example, the Alhambra in Granada, tickets must be booked in advance, and paid for by card.
The souvenir stalls around these areas often only accept cash.
Using Credit Cards in Spain
Credit and Debit Cards are widely used in Spain. Generally, they are accepted in all hotels and restaurants across the country.
However, in smaller countryside accommodations, especially family-run guesthouses, (casa rural) cards may not be accepted. Typically, if you found these places through platforms like AirBnB or booking.com, you might have already paid upfront. However this is rare.
In most restaurants, cards are accepted, but smaller hole-in-the-wall tapas bars or street vendors might only take cash.
Taxis in Spain usually accept cards. other options are ride-hailing apps like FreeNow or Cabify where payments are made in advance via the app.
Swiping Credit Cards in Spain
Spain follows the European system of chip cards with a pin number, like the rest of the continent.
The insecure magnetic strip has been phased out for years, although many card readers can still accommodate a swipe for cards from countries like the US.
Nowadays, NFC technology is prevalent, allowing for convenient tap-and-go transactions at most establishments.
For larger purchases you might be obliged to insert the card and enter your pin the old fashioned way.
Paying in Dollars on Credit Card
In Spain, many card terminals will detect if you are using a card issued in another country. If your bank is based in the US, for instance, the machine might offer you the option to pay in US dollars.
While this makes it easy to see the cost in your home currency straight away, there’s an important drawback to be aware of.
When the merchant handles the currency conversion, they often add a large commission through the exchange rate they use. For this reason, it’s crucial to ALWAYS PAY IN THE LOCAL CURRENCY. Let your home bank manage the currency exchange instead.
In my experience, I’ve never seen a more competitive rate from a merchant than the one my bank provides.
Apple Pay and Google Pay in Spain
Most places that accept cards accept Apple Pay and Google Pay.
Using your phone to pay is common across Spain.
Bring your original card as well just in case. As a tourist often your phone can run out of battery, when you take more photos than expected.
Exchanging Dollars in Spain
If you’re traveling from America, Australia, or another non-Eurozone country, you’ll need to swap your currency for Euros when visiting Spain. It’s important to note that exchanging currency in Spain, like in other European countries, might not give you the best rates.
In Spain, as in much of Europe, US dollars aren’t interesting for locals as their strong economy maintains the value of their own currency. Exchange services do exist but they cater to tourists, and often offer exorbitant rates
You will find currency exchanges in airports or city centers, but with exchange rates that are up to 10-15% worse than the interbank rate, these services aren’t cheap.
The Solution? Use an ATM to withdraw Euros directly. This is almost guaranteed to give you a better exchange rate. Before you travel, check with your bank regarding any fees for international withdrawals.
Some banks charge a flat fee per transaction, while others may take a percentage. Make sure you know what your bank does.
ATMs in Spain
ATMs in Spain, or cajeros automáticos are widely available in cities, towns, and tourist areas.
Most ATMs accept major international credit and debit cards, including Visa and MasterCard. It’s advisable to inform your bank of your travel plans to avoid any access issues and to check for any fees on foreign withdrawals.
ATMs are typically found at banks, airports, and shopping centers, offering instructions in multiple languages.
Spain is a largely card-friendly country, but it’s a good idea to carry some cash for smaller businesses, especially in rural areas.
To avoid high transaction fees, use ATMs operated by major banks rather than those at convenience stores or tourist-heavy spots. Opt for bank-affiliated machines, which tend to have lower fees than independent ones.
Tipping in Spain
Gratuities are appreciated in Spain, though they aren’t as rigidly expected as in some other countries.
In places where you build a relationship with your server tips can often be refused.
In cafés or bars, rounding up your bill or leaving small change is typical if you are leaving a tip. Again leaving tips is not standard practice.
For taxi drivers, it’s common enough to round the fare up to the nearest euro. If you receive luggage assistance at hotels, tipping porters a couple of euros per bag is considered polite, as is leaving a few coins for housekeeping.
Be aware that while tipping is generally welcomed, it should reflect your satisfaction with the service rather than feeling obligatory.
The more friendly the relationship is to their server, the less likely a spanish person is to tip. In fact, tipping in these cases suggests that one is ‘helping’ the friend, and can be seen as rude.
Tipping in Restaurants in Spain
Tipping is not expected in restaurants in Spain.
That said it is still appreciated. Leaving up to 10% is considered generous.
In restaurants, people might leave a tip of 5% to 10% when the service has been excellent. More often people just round up the bill.
Summary
Like most of Europe, the currency in Spain is the Euro.
You might get away without cash in large cities and on the tourist island areas (Las Palmas, Ibiza), but a few coins are still useful.
Withdraw cash from ATMs to get the best rates.
Tipping is not common, and generally is seen as a small extra for exceptional service.
Budgeting is important for a good trip to Spain. Check out my online travel skills classes, maybe there is a budgetting class before you travel.
